BitMEX co-founder Ben Dello is facing a class-action lawsuit for alleged market manipulation, with a US judge ruling that he played a central role in designing a liquidation system that allowed the exchange to profit from the scheme.
BitMEX co-founder Ben Dello, a British citizen, is set to face a consumer class action after US District Court Judge Andrew Carter ruled that he played a central role in an alleged scheme to manipulate prices on the cryptocurrency exchange. The decision came after Delo moved to dismiss the case, but Judge Carter concluded that he was instrumental in designing a liquidation system that allowed BitMEX to profit from the alleged manipulation.
The class action lawsuit, filed on behalf of BitMEX users, alleges that the exchange engaged in market manipulation practices that resulted in significant losses for traders. The plaintiffs allege that BitMEX’s liquidation system, which is designed to automatically close positions when a trader’s balance falls below a certain threshold, was used to manipulate prices and generate profits for the exchange.
According to court documents, Judge Carter stated that Delo’s involvement in the development and implementation of the liquidation system was critical to the alleged manipulation scheme. The judge noted that Delo’s technical expertise and leadership position at BitMEX made him a key figure in the case.
This is not the first time BitMEX has run into legal trouble. In October 2020, the US Commodity Futures Trading Commission (CFTC) accused BitMEX and its founders, including Delo, of operating an unregistered trading platform and violating anti-money laundering regulations. The exchange agreed to pay a $100 million fine to settle the charges.
The class action lawsuit against Delo and BitMEX is part of a growing trend of legal actions targeting cryptocurrency exchanges for alleged market manipulation and other fraudulent practices. In recent years, several major exchanges, including Binance and Coinbase, have faced increased scrutiny from regulators and law enforcement around the world.
As the cryptocurrency industry continues to evolve, more legal challenges are likely to emerge, highlighting the need for stronger regulation and oversight to protect investors and maintain market integrity. The outcome of the class action lawsuit against Ben Dello and BitMEX could set an important precedent for future cases involving alleged market manipulation in the crypto space.
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